The process of selling a house can be complicated, and it requires documentation. If you think selling a home on the real estate market is easy, you will be shocked. You require a lot of preparation and paperwork to sell a home.
If you want to put your home on the market, you need to be ready to know what you need. Even though the list has some things you need, this guide will guide you on where to start.
Mortgage loan documentation
If you are selling your home, you must produce paperwork about the mortgage. The documentation has to show details about the amount owed, associated charges, and your account status. To get paperwork, contact the loan service, lender, or bank associated with the bank. It will give the payoff amount needed to satisfy the loan. Remember that the payoff amount is not similar to the current balance.
Every state in the US has disclosure laws, which is the process that makes potential buyers aware of the issues of selling the house. You need to prepare this document if you are selling a home. Even though every state has laws, they could have a similar format. You can contact a real-estate-attorney to give you guidance on the same. Many mandatory disclosures relate to defects like violent crimes on the property, area environmental toxins, past legal disputes, and nuisances in the area.
Deed to the house
You need an original deed you received when you purchased the home to sell it. It might prove a challenge to many sellers because it came years prior for many sellers. If you cannot find a copy of the deed, you will have options for getting a replacement.
You can visit the locality recorder office for information about ownership and sale. You can ask the company owning the original title to call the office in your place. Some offices offer free services, but others will require a small fee.
Property tax documentation
You will have to produce documentation about the payment of property tax. You will have to show your recent tax bill to the buyer to know the approximate amount he has to pay. The taxes paid depend on the laws of the municipality you live in.
Homeowners insurance records
Even though it is not mandatory, proving you have homeowners insurance while selling is good. These records are suitable for displaying transparency for damages and repairs the house has undergone. It helps the buyers estimate what it will cost them to insure the home.
Personal identification information
Like other transactions, you must verify your identity. Today’s industry has many fraud cases, money laundering practices, and other behaviors. Verifying your identity protects yourself and the buyer from these scams. You must present a state-issued identification card or driver’s license with your photo. You can also give evidence of a utility bill or bank statements.
Original sale contract
You will have to provide original sales contracts when you wish to sell. This is the signed contract while you were buying the home. The document will help with transparency and provides data like; –
- Terms of purchasing the home
- Proof that the house you want to sell is yours
- Disclosures required at the time you purchased the home
- The original sale price
Final purchase and sale agreement
The final purchase and sales agreement documents are among the most essential documents to sell the home. The real estate agent or real estate attorney will prepare this document.
This comprehensive document covers all crucial aspects of the transaction, including the sale price, amount of earnest money, and tax information. The transaction will only succeed if all parties agree to the terms of the document.
From contracting with the agent to the closing day, selling a home involves much paperwork. The documents required to sell the house will reflect all the steps needed in the process, and this write-up takes you through the whole process from the beginning to the end.
The required paperwork for home sales varies by county and state; therefore, you need to check to know what is required. You can also consult the real estate attorney or agent for your situation.
Documents needed before listing your home
Original sales contract
An original sales contract is an agreement with the home’s previous owner. The contract outlines the purchase terms and maps out the transaction’s why, where, when, what, and who. This way, the buyer will make no mistake about the previous owner of the house and the terms and conditions of the transfer. The contract will note the price of selling the home and provides any disclosures about the product before the sale.
Appraisal from when you bought the home
An appraisal is a professional assessment of the home’s market value, determining the amount the mortgage lender will give the buyer. To proceed with the sale, you will need a new appraisal only if you sell to a cash buyer who does not need financing.
You must give the buyer an appraisal report from when you bought the home and other document updates since the first appraisal.
If you are selling before paying off the current mortgage in full, it is good to contact the servicer or lender to request a statement to show the full payoff amount. You must pay the total to satisfy the mortgage terms, including the interests you owe until you plan to pay it in full.
The amount differs from the current balance, which appears on the most recent account statement and might need interest. The lender must provide the payoff amount; therefore, feel free to ask. With this info, it is possible to calculate the estimated sale proceeds.
Manuals and Warranties
Home maintenance and repair records, appliance warranties, and manuals allow the buyer to know what they inherit when they move into the new home. You must provide the buyer with guarantees and manuals for items like;
- Garbage compactor
- Washers and dryers
A buyer will always be curious to know what kind of home he buys from you. Availing all documents will help you see the house’s value, and the buyer will know what he inherits. You need to ensure that you give them a monthly summary of all utility bills. It is optional to provide this information, but you can help him know an estimated budget. Consider giving them a copy of all records you have, whether digital or hard copies.